If you work in B2B pricing or sales ops, you know deal profitability isn’t just a dashboard metric—it’s the difference between a healthy business and a slow leak. Yet, with all the data, reports, and “insights” thrown at you, getting a clear read on deal profitability can feel like guessing in a fog. This guide walks through how to cut through the noise using Vendavo analytics tools. Whether you’re new to Vendavo or just want to get more out of it, this is for you.
1. Start With Clean, Trustworthy Data
Let’s get one thing straight: No tool—Vendavo included—can fix bad data. Garbage in, garbage out. Before you start diving into dashboards, make sure:
- Costs are up to date. If your cost data lags, every margin calculation will be off. Don’t just trust the last upload.
- Discounts and rebates are captured fully. It’s easy to miss off-invoice discounts or post-sale rebates. If they’re not in the system, you’re fooling yourself.
- Product and customer hierarchies are clean. If you measure deals against the wrong peer group, you’ll get bad advice from your analytics.
Pro Tip: Do a quick spot-check. Pull a handful of recent deals and trace them from quote to invoice. If the numbers don’t match what you see in Vendavo, stop and fix it before you move on.
2. Know What “Profitability” Really Means for Your Business
Not all margin is created equal. Vendavo lets you analyze gross margin, net margin, and even contribution margin. But which one matters?
- Gross Margin: Good for a quick pulse, but ignores a lot of real-world costs.
- Net Margin: More accurate, but only if your cost allocations are solid.
- Contribution Margin: Helpful for decisions on incremental business, but trickier to calculate.
Here’s the deal: Pick one margin definition for your core analysis and stick to it. Mixing and matching just confuses everyone. If your CFO cares about net margin, don’t obsess over gross.
3. Set Up Your Vendavo Analytics Workspace for Real World Use
Vendavo has endless dashboard options. Most folks overcomplicate things. Here’s what actually works:
- Deal Scorecards: Build a scorecard that shows margin, volume, price, and cost on one page. Skip the vanity metrics.
- Peer Group Benchmarks: Compare deals to similar ones—by product, segment, or region. But don’t get so granular that every deal is “unique.”
- Exception Alerts: Set alerts for outlier deals (both high and low margin). Don’t try to flag every deal—it’s noise.
Ignore: Fancy charts that nobody understands, or metrics that don’t drive action. You want actionable insights, not eye candy.
4. Analyze Deals the Right Way (Step-by-Step)
Here’s how to actually use Vendavo analytics to spot profitable (and unprofitable) deals:
a. Filter the Noise
Start by filtering out deals that aren’t relevant—small one-offs, internal transfers, or anything that doesn’t reflect real commercial activity.
b. Sort by Margin (and Don’t Stop There)
Everyone sorts by margin. The trick is to look for patterns:
- Are certain reps always winning low-margin deals?
- Do specific customers grind you down on price every time?
- Are some products sold below cost, but only in certain regions?
c. Drill Down—But Not Into a Rabbit Hole
Vendavo lets you drill into any deal. Use this to:
- See the full discount stack (list price, negotiated price, rebates, etc.)
- Check how this deal compares to the peer group
- Understand if this is a one-off exception or a trend
But don’t waste an hour on one weird deal unless it’s material.
d. Tag and Track
If you spot a pattern—like a certain customer segment always dragging down margin—tag it for ongoing tracking. Build a simple report that monitors these trouble spots over time.
Pro Tip: Don’t get hung up on finding the “perfect” peer group. Use broad but relevant categories. You want trends, not paralysis by analysis.
5. Use What-If Analysis, But Don’t Overthink It
Vendavo’s what-if tools are powerful, but can also lead to fantasyland if you’re not careful. Use them to:
- Test how a price increase would impact margin on a deal or segment
- See what happens if costs move up or down
But keep it grounded. If you’re modeling 5% price hikes across the board, ask yourself: Would sales really hold? Are competitors likely to react?
What to Ignore: Endless scenario modeling with zero follow-through. It’s a waste if nobody acts on it.
6. Share Insights—Not Just Reports
It’s tempting to send out big, beautiful reports. Most go unread. Instead:
- Summarize the three biggest insights in plain English.
- Flag deals or trends that need action (“We keep losing money on SKU 123 to Retailer X.”)
- Meet with sales or finance folks to discuss, not just dump data.
Tip: Vendavo lets you annotate deals and share notes. Use this to keep a running commentary—context matters more than raw numbers.
7. Watch for Common Pitfalls
Even with good tools, it’s easy to go off track. Here’s what trips people up:
- Overfitting peer groups. If every deal is compared to a tiny, handpicked set, you’ll always be “justified.”
- Ignoring indirect costs. If you only look at direct costs, you might think bad deals are profitable.
- Chasing every exception. Not every low-margin deal is a disaster. Sometimes you have to take a hit for a strategic reason—just make sure it’s intentional.
8. Keep It Simple. Iterate.
Don’t try to build the perfect analytics setup on day one. Start with a basic scorecard and a handful of reliable reports. As you use Vendavo more, refine your setup based on what’s actually useful. If nobody looks at a report for a month, kill it.
Remember: The best analytics workflow is the one people actually use. Simpler usually wins.
Deal profitability analysis isn’t a one-time project—it’s a habit. Focus on clean data, actionable insights, and keeping things simple. The rest is just noise. Start small, fix what matters, and build from there.